Eliminated Wisconsin’s Alternative Minimum Tax

(2017 Wisconsin Act 59)

Wisconsin is one of only six states to have an Alternative Minimum Tax (AMT) as a component of their tax code. The AMT is calculated by first determining alternative minimum taxable income (AMTI), subtracting any allowable exemption, and applying the AMT rate. The base for computing AMTI is regular taxable income, to which adjustments and tax preference items are added.

An exemption is provided to taxpayers with an AMTI below specified amounts. The exemptions vary by filing status and phase out as income rises. Finally, the taxpayer’s AMT liability is compared to the taxpayer’s regular tax liability. If the AMT liability exceeds the regular tax amount, an AMT is owed equal to the difference.

2017 Wisconsin Act 59 repeals Wisconsin’s AMT for taxable years beginning on or after January 1, 2019.